TROUBLED group Jarvis has been axed by Kirklees Council.
The group had a contract to build four new special schools.
Councillors yesterday decided to end the £65m-plus agreement because of concerns over the future ownership of the firm's accommodation services section.
A new consortium is being appointed to take over the programme, but no date has yet been set for work to start on the site of the new special school at Newsome.
Work was halted on the site in the summer because of Jarvis's deepening cash problems.
Clr Geoff Alvy, the council's Cabinet member for children's services, said: "We have been having detailed discussions with Jarvis and its bankers since the company made its financial statement in the summer.
"However, due to the uncertainty of the future ownership of the accommodation services division, Jarvis has not been able to reassure the council as to when it would be able to sign the contract and start construction."
Clr Alvy added: "Consequently, the Cabinet agreed to recommendations that officers negotiate an alternative option with a consortium that had also submitted a bid.
"The council intends to work with Jarvis to ensure a smooth transfer to the reserve consortium."
The Jarvis contract with the council to provide services at 20 mainstream schools is not affected by yesterday's decision.
Clr Alvy reaffirmed Kirklees's commitment to a £25m-plus investment programme to build new special schools in the district.
The "reserve team" from the original process is a consortium led by Surrey-based Wates Construction.
Jarvis chief executive Kevin Hyde stepped down on Tuesday. The group's share price is about 32p.